Board Learning Opportunities

How Often Do Nonprofit Board Members Need to Question Strategic Norms?

 

How Often Do Nonprofit Board Members Need to Question Strategic Norms?

By Eugene Fram

A new nonprofit director has a lot to learn. Considering that his/h term of service will be relatively short (typically four to six years), he/s must quickly learn the “ropes” to participate in a meaningful way. In this process, colleagues and leadership will acquaint him/h with prevailing board systems and culture—often ignoring the depth of expertise she/h can employ. Example: An expert in financial strategies may be asked to assist the CFO with accounting details, far below the person’s skill level. Oftentimes the new board member also is greeted with a mantra that says, “We’ve always done it this way.” As the director moves in his path from novice to retiree, during a short tenure, there is little opportunity to suggest innovations that differ from the accepted fundamentals and to successfully advocate for change. (more…)

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Can A Board Member Ever Wear Two Hats?

Can A Board Member Ever Wear Two Hats?

By Eugene Fram

Although this is not a good idea for nonprofit organizations, it is not an unusual occurrence, especially among start-ups. A director in a start-up nonprofit will need to assume some staff responsibilities as a volunteer. But he/s will need to organizationally report to the CEO. (more…)

Nonprofit Board Members—Are They Aware of Their Independent Director Duties?

Nonprofit Board Members—Are They Aware of Their Independent Director Duties?

By Eugene Fram     Free Digital Image

The vast majority of nonprofit board members serve as independent directors. They are not members of management, have other occupations as their major focus, but have some significant responsibilities to a community, profession, government or professional/trade association. Mary Jo White, Former Chair, U.S. Securities & Exchange Commission, outlined the responsibilities of fund board members who also are independent directors to overview the investment dollars made by 53 million U.S. households. Many of her comments, in 2016, easily apply to nonprofit board members and their responsibilities as Independent directors. Note: The italicized materials following are White’s direct quotations. * (more…)

Can Nonprofit Boards Strategically Reinvent Themselves?

Can Nonprofit Boards Strategically Reinvent Themselves?

By: Eugene Fram      Free Digital Image

Not many nonprofit boards look to strategic renewal/reinventing as viable options. Dedicated to a specific mission, boards may merge with related organizations as their prospects decline or simply declare victory. March Of Dimes has been a classic case of redefining its mission when The Salk Vaccine limited widespread polio epidemics. Today, the nonprofit’s programs serve people with disabilities: children, adults, seniors, military personnel and veterans.

Basic Motivation Problems

Board Turnover & Leadership – According to the 2015 BoardSource report, Leading with Intent, “ Board leadership is not a lifetime commitment, with boards chairs and other officers being subject to term limits.” In the study, sixty-nine percent of board chairs only had terms of one or two years, not a great deal of time to lead strategic changes.

Numbers of clients are declining and/or the opportunities for growth are limited — Those offering psychological counseling services have faced declining client populations for a number of years, as new medications have become more useful. Some have combined with other nonprofits offering a wide range of human services while others have closed. A few of the nonprofits might have survived if they had anticipated the potential impact and had developed viable services, for example, offering counseling services to private or public school systems.

Need But No Market – In the human services arenas, there are always fundamental needs on which to base a mission. Working within a structure where the clients for the nonprofit’s service are not the funders, these needs are often unmet. Example: Early childhood education is a well-known need, but securing sufficient funding remains a significant barrier to delivering the services.

Guide to Nonprofit Strategic Renewal – An Underused Option http://bit.ly/1mQKMGi

1. Select growth applications that connect with people emotionally. – The Easter Seals renewal focused on people with physical disabilities and special needs, a natural outgrowth of working with polo victims. The nonprofit organization was well aware of the emotional reactions and public appeals that resonated with the mission focused staff and volunteers.

Anticipated success can also be a motivator for staff and volunteers. The ALS Ice Bucket campaign in 2014 is an example of drawing attention to a challenge through a gimmick with a substantial emotional appeal. It provided significant additional funding that enabled the organization to rethink its research prowess. Whether or not the appeal can continue to be utilized in coming years remains to be seen. At the least, it is added evidence to the power of emotional appeals to generate the potential for strategic renewal.

2. Treat strategy as a dialogue as opposed to a ritualistic, documented-based planning process. – Strategic renewal in the nonprofit environment often occurs under crisis conditions. Consequently, starting with a ritualistic strengths and weakness analysis is not the way to begin strategic planning at these times – complete decline is probably at hand. The issue has to be what resources can be salvaged from the current mission to enhance the new one.

If the strategic process is one that is reviewed every three to five years, every nonprofit organization should be honest about answering this generic question or similar ones: Who would miss our organization if we ceased to exist? Broad considerations of the responses and subsequently investigation can lead to open discussions to consider future opportunities for strategic renewal. As noted before, there are many new missions to address unmet human needs.

3. Use experiments to explore future possibilities. – Nonprofit organizations often shy away from using financial and human resource assets for experimentation. A field ethic that prevents a nonprofit from experimenting is an unrelenting focus on directing resources to current client services. Where strategic renewal is required, or seen as an opportunity, outside funding needs to be developed, except when the organization has unusual reserves available for experimentation.

4. Engage (external and internal) leadership (communities) in the work of renewal. – “Successful strategic renewals … need to be broadly based so they can engage managers (and staffs) … in the organization. Creating (internal and external) leadership communities around the renewal project allows (board) leaders to learn about the future by doing and win over potential resisters.” The support of the chief operating officer is critical. If he/s is not behind the renewal, the board will have to make a forced change or wait until a planned succession takes place.

 

Nonprofit Chief Executives Should Have Title: President/CEO

 

Nonprofit Chief Executives Should Have Title: President/CEO

By Eugene Fram

This post, over several years, has developed a record of continued viewing interest. Rarely a day passes in which the data doesn’t include one or two views, or occasionally a day in which the viewer’s data can rise to five. For example, when previously updated in 2016 there were 525 post views and counting.  Perhaps the controversial nature of topic causes the longevity of interest

When nonprofit organizations reach a budget level of over $1 million and have about 10 staff members it is time to offer the chief operating officer the title of PRESIDENT/CEO. In addition, the title of the senior board volunteer should become CHAIRPERSON OF THE BOARD, and the title of EXECUTIVE DIRECTOR needs to be eliminated. Experience has shown that with a reasonably talented PRESIDENT/CEO at the helm, he/she can provide the following benefits: (more…)

Two Nonprofits Merge: Synergy or Collision Course?

Two Nonprofits Merge: Synergy or Collision Course?

By: Eugene Fram     Free Digital Image

Having led a merger committee that resulted in a successful merger with another nonprofit, I thought my field observations might be of interest to others contemplating a merger. These comments center on a merger of two equal partners, which plan to form a new organization, not the acquisition of one nonprofit by another. (more…)

Are Your Board and Staff Ready For Change?

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Are Your Board and Staff Ready For Change?

By: Eugene Fram

“Ideally, change takes place only when is “a critical mass of board and staff want … it. A significant … portion of leadership must realize that the status quo won’t do” * Based on my experiences, this ideal is rarely achieved because:

  • The CEO needs to support the changes being suggested and/or mandated by a majority of the board.   But, if not fully invested in the change, he/s can accede to board wishes for action but move slowly in their implementations. The usual excuse for slow movement is budget constraint.

(more…)